Perennial Bundesliga championsBayern Munich have emerged as the new favourites to sign Real Madridmidfielder Isco.
The Spaniard started the season out of favour under Real coach Zinedine Zidane, but has featured in more games as the season progresses.
He has found some good form too during his limited appearances, scoring two La Liga goals and contributing two assists in his past four league games.
Premier League sides Chelsea and Tottenham Hotspur had been linked in the summer with possible moves for the 24-year-old, but according to Spanish sports magazineDon Balon,both sides have been overtaken by Bundesliga giants Bayern Munich in the transfer duel.
Isco's contract runs out in 2018, and with both sides far from an agreement for an extension, Isco could be available for a reduced price.
However, Real chairman Florentino Perez and Bayern manager Carlo Ancelotti's relationship is reportedly fractured, with Ancelotti having been sacked by the clubin 2015, and therefore a deal may not be possible.
Premier League title hopefuls Chelsea and Spurs had been hopeful of signing former Valencia and Malaga midfielder Isco, and with the playerfailing to secure a new contract, while the likes of Gareth Bale, Toni Kroos, Luka Modric and more recently Cristiano Ronaldo pen new deals, both sides could be hopeful of signing the 14-time capped Spain international.
Isco has been unable to cement his place in Real's starting eleven since joining the clubin 2013, finding difficulty in attemptingto dislodge the likes of Ronaldo, Bale andKarim Benzema, while youngsters Marco Asensio, Lucas Vasquez and recent signing Alvaro Morata have also been prefered by Zidane so far this season.
Isco has made 105 La Liga appearances during his time at the Bernabeu, scoring 17 goals.